Oxus Gold raises $185 million from Chinese consortium for Uzbekistan's Amantaytau Goldfields

Central Asia-focused gold miner Oxus Gold Plchas reported it has signed a $185 million financing deal with a group of Chinese investors, which includes the sale of a majority stake in the company, to fund develop at its Amantaytau Goldfields joint venture in Uzbekistan.

The company said it expected the proceeds to enable its 50% owned Amantaytau Goldfields to target first production at the underground sulphide project for the middle of 2011 and thereafter expand annual production to about 300,000 ounces.

Oxus Gold will raise $85 million through issue of shares and convertible loan notes to the Chinese investors, including China's third-largest zinc producer Baiyin Nonferrous Group Co Ltd and state-owned CITIC.

The company said it will additionally grant warrants for about $20 million in return for an undertaking to arrange a further minimum of $80 million in project finance. It may also raise an additional $6.37 million)through a sale of shares to institutional investors.